By Emily Setona
QWAQWA — A tense special council sitting at Bluegumbosch Multipurpose Hall ended with the adoption of the municipality’s adjustment budget, averting tougher provincial intervention despite alarm over a ballooning R537 million deficit.
Councillors initially rejected the budget until Speaker Mandlenkosi Dlamini warned that failure to pass it could escalate intervention from Section 139(7) to the harsher Section 139(1) which allows for council dissolution and an administrator’s appointment.
Chief Whip Lebesa urged approval, saying the adjustments reflect newly received grant funding that must be incorporated to lawfully allocate spending.
“The deficit balances the books honestly. Rejecting the budget on that basis alone would be unwise,” he said.
The Economic Freedom Fighters opposed the budget outright, while MAP16 cautioned against normalising deficit budgets and requested a caucus. After deliberations, MAP16 withdrew its objection and voted in favour with reservations. The Democratic Alliance asked that its rejection be formally minuted.
Dlamini later confirmed the deficit has surged from R237 million to R537 million, citing weak revenue collection and spending that exceeds income. He said the Municipal Finance Management Act requires an adjustment budget within six months to align finances with current needs, warning that unbudgeted spending would be unauthorised.
“Our expenditure is higher than revenue. That’s a risk,” Dlamini said, adding that poor collections constrain hiring and service delivery.
While the vote prevents immediate escalation of intervention, councillors acknowledged that the widening deficit and revenue shortfall remain a serious threat to the municipality’s stability.
